Respuesta :
The equilibrium price level and the equilibrium level of output are determined by the intersection of the short-run aggregate supply curve, the long-run aggregate supply curve, and the aggregate demand curve. Each and every issue involving the AS- AD model begins here. Aggregate Demand Changes in the AS-AD Model
What occurs when the long-run curve and the aggregate demand curve cross?
When the aggregate demand curve intersects both the short-run and long-run aggregate supply curves, it has moved along the short-run aggregate supply curve. When the economy finds this new long-run equilibrium, the output is unaffected, but the price level changes.
What is the aggregate supply curve's long-term price level?
Real GDP is $12,000 billion annually, and the price level is 1.14, with aggregate demand at AD1 and the long-run aggregate supply curve as depicted. Long-run equilibrium will be restored at real GDP of $12,000 billion year, but at a higher price level of 1.18, if aggregate demand rises to AD2.
At long-run equilibrium, what happens to aggregate supply and demand?
At the point where AD1 and the long-run aggregate supply curve connect, the economy depicted here is in long-run equilibrium. In the short run, real GDP and the price level both increase if aggregate demand rises to AD2. In the short run, real GDP and the price level both fall if aggregate demand falls to AD3.
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